The paper 'Human Resource Management of Gateway Engineering Limited" is a good example of a management case study. Derek Cresswell formed a company ‘ Gateway Engineering Limited’ that is present in the business scenario for the last 47 years. Later on, a multi-national company purchased the right to ownership. Directors have acquired the services of a new CEO with the determination of the placement of focus on the customer. Staff strength at present is 1400. Fifteen years earlier, there were 3500 people on the payroll of the company. There are four divisions in the company located at different places in the North East of England.
Diversification of services is present with the company targeting both businesses as well as public customers. Problem Identification The strength of the company, as compared to fifteen years ago, is less than half. The company in the past had developed particular techniques along-with effective management systems. These attributes were attractive enough for the customers who were in need to ‘ contract out, some fraction of their sources of business. Resultantly company had developed a broad customer base due to the diversification in their client services.
They offered service for engineering, construction and other industries. The dynamics of business necessitated the use of developed IT systems. This proved to be a crucial set back for the company. In addition, the operation costs also rose and profits started declining. Management of the company made strong efforts to decrease the outflow of employees that were not fruitful at the day end. The company, in order to resist against redundancies, offered a part of their services even to the general public, that included contract purchase of gas, electricity and oil, etc.
Almost all of the restructuring efforts were in vain and the company shed its staff. For the past year, the company has witnessed a huge turnover of the staff and having trouble to hire new employees. This problem persists even today. The present scenario is that company has succeeded in winning a new contract that requires additional hiring of around 850 people in the coming two years. The problem of high turnover and hindrances faced in finding new employees certainly presents one of the major issues, as it has to hire around 850.
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